Q1-2

Nemji purchased one share of Stock A for $500. Three years later, Nemji exchanged the share of Stock A with their friend for one share of Stock B, which was worth $1,500. What is Nemji's amount realized, adjusted basis and gain or loss realized on the transaction? Mary purchased a personal-use car for $25,000 in 2019. Of the $25,000 purchase price, Mary paid $20,000 cash and the rest was paid by a $5,000 auto loan that Mary took out at SAFE Credit Union. While she owned the car, Mary paid $2,000 to have the car maintained. Mary also paid $4,000 to replace the car's engine. This year, Mary was able to sell the used car for $48,000 due to inflation and supply chain constraints. Mary paid $1,000 in selling expenses. The buyer assumed Mary's remaining outstanding debt on the car (which at that point was $2,000 ). What is the amount of Mary's realized gain or loss? Instead, assume that Mary sold the car for $5,000 and paid no selling expenses. In this scenario, the buyer did not assume any of Mary's debt. What is the amount of Mary's realized gain or loss